GHAC Neighborhood Studios

A budget is essentially a way to manage the money that is coming in and out every month. Create your personalized budget with our calculator which can help you think about your money in terms of needs, wants and savings.

As you begin to build your own finances, it's important to know the difference between good debt and bad debt. For example, many students take on loans to help pay for the sky-rocketing cost of education. This could be considered good debt. While racking up a credit card bill for things you may not need is considered bad debt. Before you take on debt, you should also understand your monthly payments and how much will be allocated to the principal and the interest. If your monthly required payments are interest only, be sure that you can pay a portion of the principal each month to help you pay down the debt.

Your credit score is more than just a number, it's an important component of your finances. Start by reviewing your credit report to understand your score and then look for ways to make improvements.

Set your goals. Ask yourself “What do I want to achieve?” By setting goals, it can be easier to stay on track with good financial habits rather than wasting money on things you don’t need. Be sure to consider both short-term and long-term goals.

Prepare for education costs. As the price of a college education continues to rise, it can help to start planning in advance. It's never too late to start saving, so make sure you understand the different types of savings vehicles and how much you'll need to save. There are also a variety of loans and financing options to help you fund your education.

Establish an emergency fund. An emergency fund can help give you peace of mind and control over your finances if you were faced with the unexpected. What if your car broke down, or you lost your job? An emergency fund can help you handle those surprises without compromising your finances.

Plan for retirement. Even though it may feel far away, it's never too early to start planning for retirement. The earlier you start the more your savings may grow over time thanks to the power of compounding. Learn more about how this works to help improve your financial outcome.

Once you start working, it’s important to understand the other benefits your employer offers beyond your paycheck. Find out if your employer offers the following benefits:

Health insurance. Simply put, health insurance is a must for just about everyone. Make sure you understand your cost and coverage options to select a plan that works for you and your family.

Health Savings Accounts (HSA). If you have a high deductible health plan, an HSA can help you save for medical expenses both today and in retirement.

Retirement savings. Make sure you are saving in your employers plan if they offer one. Additionally, if they offer matching contributions, be sure you are saving enough to take advantage of this great benefit.

Protect your earnings. What would happen if you were unable to work due to an illness or injury? Disability insurance can help by providing income in your time of need.